The tech sector enjoyed a decent bull market in 2023 up until now, but the trend has shifted in the last few weeks. It’s too soon to tell whether it’s a trend shift or a temporary dip. But even if the sector isn’t lucrative as a whole, there are several tech stocks ready for a healthy bull run (or are already experiencing one). Three of them should be on your radar.
A newcomer to TSX
Lumin Group (TSXV: LMN) joined the junior market in March 2023, though it has been operating since 2013. It’s an acquisition-oriented company that focuses on communication and media companies. It has a portfolio of 25 businesses hailing from and operating in different countries.
The young stock is trading at a 24% premium to the price it listed, though the current upward momentum can be attributed to the sector-wide positive trend. But the stock’s strengths may be enough to carry it forward. Its financials are healthy, and even though the debt is sizable enough, it’s a decent number for an acquisition-oriented company.
The diverse portfolio and some future-oriented acquisitions (i.e., companies focused on artificial intelligence, or AI) can help the company grow organically in the future.
An e-commerce company
The e-commerce stocks in Canada experienced a massive slump after a meteoric rise during the pandemic. Lightspeed Commerce (TSX: LSPD) was no exception and has lost over 86% of its market value from the 2021 peak.
Even though the stock experienced multiple upticks along the way, none were enough to change the course of the stock for the long term. However, there are still reasons to believe in an upcoming bull run.
One reason to be hopeful about Lightspeed Commerce’s upcoming bullish phase is Shopify’s compelling growth in 2023. While the two operate in different domains, the lead e-commerce stock’s performance can do a lot to create optimism in the market.
The company’s finances are improving in the sense that the operating losses are lowering, and even though it’s a modest improvement, it may contribute to an upcoming bull run.
A real estate-oriented tech stock
Real Matters (TSX: REAL) developed a platform to help two stakeholders of the real estate industry: mortgage lenders and insurance providers. The platform allows the business entities in these two real estate segments to connect with field agents and other real estate stakeholders efficiently. The network of field agents this platform supports is one of its core strengths.
The company operates in both Canada and the US, though the bulk of the revenue is generated from its U.S. business segments. The financials of the company are steadily improving, and even though it’s still not in the green yet, it’s getting there. The stock is already going through a strong bullish phase, and its improved financial position and minimal debt may help it keep sailing for a relatively long time.
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Foolish takeaway
The three tech stocks are either bullish or poised for a bull run. Making a purchase decision now can help you benefit from a substantial portion of this bullish phase. But that will only happen if you exit at the right time.
